Brazil’s producer price inflation fell to 0.13% in February 2025 from 1.35% in January. The food sector’s decline, marking a change from nine months of increases, largely contributed to this slowdown. Yearly inflation remains high at 9.69%, the largest annual rise since September 2022.
In February 2025, Brazil’s producer price inflation fell significantly to 0.13%, a sharp drop from January’s revised rate of 1.35%. This decline marks the 12th consecutive month of inflation, but it represents the smallest increase recorded in over a year. Notably, 14 out of the 24 industrial sectors reported positive price changes compared to January.
The food sector, which significantly influences the Industrial Price Index (IPP), experienced a notable decrease of 0.84%. This reduction marks the first decline after nine months of consistently rising prices. “This slowdown is mainly driven by the negative price variation in food items. Additionally, the appreciation of the real against the dollar between December and January affected various sectors, including tobacco, timber, food, and metallurgy,” stated Alexandre Brandão, an IPP analyst.
Despite the February decrease, producer prices rose 9.69% year-on-year, indicating the largest annual increase since September 2022. This highlights ongoing inflationary pressures across several sectors even as monthly inflation rates decline.
In summary, Brazil’s producer price inflation experienced a notable reduction in February 2025, indicating a more modest inflationary environment. The reversal of price increases in the food sector contributed significantly to this trend. Seasonality, currency fluctuations, and market dynamics are critical factors influencing producer prices in the nation, despite an overall annual increase in prices.
Original Source: www.tradingview.com
